Commercial property insurance

Commercial property represents a significant financial asset and, for many businesses, the foundation from which they operate. Without adequate insurance, a single event such as a fire, storm, or liability claim has the potential to result in substantial financial loss that could take years to recover from. The right cover ensures that your property, your income, and your business continuity are protected when the unexpected happens.

This cover is designed for anyone with a financial interest in a commercial property, whether you own the building, lease it as a tenant, or operate your business from premises you own. Commercial property owners, investors, and business tenants each have distinct exposures, and cover can be tailored to reflect your specific role and needs.

Commercial property insurance can cover a broad range of risks including physical damage to your building or contents from events such as fire, storm, flood, and theft, through to liability claims, loss of rental income, and business interruption. The specific risks covered will depend on how your policy is structured and your individual circumstances as an owner or tenant. A Marsh risk advisor can help ensure your policy reflects your full exposure.

Yes, both can be included as part of a comprehensive commercial property policy. Loss of rent cover is available for property owners who rely on rental income, while business interruption cover is available for tenants whose ability to trade is impacted by an insured event. Both are optional extensions that a Marsh risk advisor can help you assess and structure correctly.

Certain characteristics can make a commercial property more difficult or expensive to insure, including high risk building materials such as EPS cladding or asbestos, properties that are unoccupied, locations in flood or bushfire prone areas, a history of claims, or occupancies considered high risk by insurers. These factors do not necessarily mean cover is unavailable, but they do require specialist knowledge and access to the right markets. Marsh has the insurer relationships and expertise to find solutions for properties that may have been declined or heavily loaded elsewhere.

Public liability insurance is strongly recommended for both commercial property owners and tenants, as it protects you against claims for personal injury or property damage made by a third party. For property owners it is often a standard inclusion within a commercial property policy, while tenants may need to arrange it separately or confirm what their lease requires. A Marsh risk advisor can review your obligations and ensure the right level of cover is in place.

Most commercial property policies impose restrictions on cover when a property is left unoccupied, typically after a period of 60 to 90 days. This can result in reduced cover or certain protections being voided entirely until the property is reoccupied. It is important to notify your Marsh risk advisor as soon as you know your property will be vacant so we can ensure your cover remains adequate during that period.

Yes, it is possible to insure multiple commercial properties under a single policy, which can simplify administration and, in many cases, result in more competitive pricing. This is a common arrangement for property investors or businesses operating across multiple sites. A Marsh risk advisor can structure a policy that covers your full portfolio efficiently and ensures that each property is adequately protected.

The activities carried out within a commercial property and the materials used in its construction have a direct impact on the level of risk an insurer is taking on. A property housing a chemical storage facility presents a very different risk profile to one occupied by a professional services firm, and materials such as EPS cladding or asbestos significantly increase fire and health related risks. Accurate disclosure of these details is essential, as failure to do so can result in a claim being reduced or denied entirely.

Marsh goes beyond arranging insurance by taking a holistic view of your property related risks and helping you understand and manage your full exposure. Our risk advisors work with you to identify potential gaps in your cover, ensure your sums insured reflect true replacement values, and structure a policy that responds when you need it most. With access to a broad panel of Australia's leading insurers and a dedicated claims advocacy team, Marsh is with you at every stage of your insurance journey.